I am currently an employed physician. And right now, that works very well for me. However, employment does come with its downsides. And I would even go so far as to say that private practice is the best path to optimize both physician autonomy and excellence in patient care. In an effort to support private practices, I’ve partnered with Mitra Sadhu MD who started Link Medical Spaces to tackle the high cost of medical office space – any doctor’s biggest practice expense. Her goal is to help healthcare professionals run lean by connecting underutilized space with those seeking to sublease and reduce overhead.

I’ve asked Mitra to share the issues that private practice physicians face, especially related to their biggest practice expense – medical office space – and how they can actually turn this into a source of revenue.

The real cost of private practice

Every physician who owns a practice knows this truth: real estate is your biggest fixed expense. Your lease or mortgage is likely your single largest recurring cost—yet, for many doctors, it’s seen as just that: an expense.

But what if I told you that your office space could actually become a revenue source instead?

A tale of two practices

Let’s take two physicians, both running private practices.

Dr. A leases a 3,000-square-foot medical office. He fills it with all the equipment and staff he needs but doesn’t think much about the extra exam rooms sitting empty most days. Meanwhile, his overhead is high, and he feels the squeeze of declining reimbursements and rising costs.

Dr. B leases the same 3,000-square-foot space. But instead of letting unused rooms sit idle, she monetizes them. She lists available space on a platform where other healthcare providers—therapists, specialists, even visiting surgeons—can book time in her underutilized rooms. The extra income offsets her rent, reducing her overhead.

Same-sized practice. Same space. One is paying full price. The other has found a way to make her healthcare real estate work for her.

Why lean thinking is critical for private practice survival

Private practice is under attack. We all see it. Corporate medicine is swallowing up independent groups, making it harder for physicians to remain in control of their own work.

The lean private practice mindset—one that prioritizes efficiency, financial sustainability, and smart resource allocation—is no longer just a good idea. It’s essential for survival.

Lean business principles teach that waste is the enemy—wasted time, wasted resources, wasted space. And in private practice, wasted space is wasted money.

But lean thinking isn’t about cutting corners—it’s about being laser-focused on excellence in patient care by eliminating unnecessary costs and distractions.

Who can benefit from subleasing their medical office?

If you’re a physician or practice owner with extra space, subleasing can create financial breathing room and even turn your real estate into an asset instead of a burden. Here’s who stands to benefit:

Physicians & practice owners with extra space

• Established practices with underutilized exam rooms – If you have more space than you need, renting out a few rooms can offset your lease or mortgage.
• Physicians who downsized their practice model – If you’ve moved to a concierge or cash-pay model with fewer patients per day, or have cut back on clinical hours, you may have space that’s no longer fully occupied.
• Physicians with short-term gaps – If you have a new provider joining in six months or plan to expand, subleasing can be a short-term solution to help with overhead.
• Owners of medical office buildings – If you own your building and have vacant space, offering flexible leases to specialists can generate revenue and create a built-in referral network.

Who can benefit from subleasing instead of leasing or buying?

Subleasing is not just a great way for practice owners to make their office space work for them—it’s also a game-changer for:

Physicians looking to start lean

• New private practice owners – The biggest mistake many new practice owners make is taking on too much space, too soon. A full lease or mortgage can be financially crippling in the early stages. Subleasing offers flexibility and a lower-risk entry into private practice.
• Doctors testing a new location – If you’re considering expanding to a new area but aren’t ready to commit to a long-term lease, subleasing lets you test the waters before making a big investment.
• Specialists who don’t need a full-time office – Surgeons, mobile specialists, or telehealth physicians who only need physical space a few days per week can save significantly by subleasing instead of signing a traditional lease.
• Physicians transitioning to part-time or concierge models – If you’re reducing your patient load, subleasing gives you the freedom to work without carrying excessive overhead.

Turning your biggest expense into an asset

Here’s the shift: Stop looking at your office as a cost. Start looking at it as an asset.

By subletting underutilized space to other healthcare providers, you create:

• A new revenue stream that offsets your lease or mortgage
• A collaborative environment where specialists and referring doctors work side by side
• A buffer against rising costs—you gain financial flexibility in an uncertain market

What to watch for in lease agreements

Before you jump into subleasing, it’s important to review your lease agreement carefully. Many physicians assume they can rent out space, only to find out their lease prohibits it.

Key lease terms for tenants (Subleasing physicians)

• Sublease Clause – Does your lease allow you to sublet space to another provider? Some landlords prohibit it, while others require written consent.
• Exclusivity Clauses – If another tenant in your building has an exclusive agreement (e.g., only one dermatology practice allowed), it may limit who you can sublease to.
• Use Restrictions – Make sure your lease allows for medical use and that additional providers won’t violate zoning laws or building policies.
• Liability and Insurance – Ensure that your malpractice and liability insurance covers subtenants or shared-space agreements. Some leases require all tenants to carry specific coverage.
• Operating Expenses & Utilities – If your lease is a gross lease, your landlord covers utilities and maintenance. If it’s a net lease, you may need to divide those costs with a subtenant fairly.

Key lease terms for landlords (Owners looking to monetize space)

If you own your medical office building and want to rent space to other providers, here’s what to consider:

• Tenant Mix – Does the provider you’re bringing in complement your practice or existing tenants? Competitive specialties might cause friction.
• Compliance & Licensing – Ensure the subtenant meets all local and state licensing requirements for medical facilities.
• Americans with Disabilities Act (ADA) Compliance – Some modifications may be required to accommodate new tenants.
• Build-Out Costs – If your new tenant needs specific equipment or modifications, decide who is responsible for those costs.

Final thoughts: The future of private practice

Change is here to stay and private practices must evolve. 

But here’s the good news: By adopting a lean private practice model, staying laser-focused on excellence in patient care, and making smart real estate decisions, independent physicians can thrive—even in today’s challenging healthcare environment.

So the question is: Are you using your practice’s space to its full potential?

The solution is out there. The only question left is—will you take advantage of it?

How to get started (Without the headache)

If you’re thinking, “That sounds great, but I don’t know where to start,” you’re not alone. That’s exactly why Mitra created Link Medical Spaces – it’s what she wishes she had when she started her practice!

To celebrate Doctors’ Day, Link Medical Spaces is offering 25% off all new listings for the entire month of March using the code Prudent25

👉 Want to learn more? See Mitra break it all down in this short webinar: 🎥 How to Turn Your Biggest Practice Expense into a Revenue Source

And here are some other great resources to help any doctor currently in or considering private practice:

• 9 Things You Must Know About Starting a Private Practice
• What Doctors Should Know Before a Private Equity Sale
• 7 Do’s and Don’ts of Building a Successful Medical Practice
• 5 Important Things You Need to Know About Buying Into a Medical Practice
• Doctors Can Revolutionize Their Career with a Micro-Business Mindset

What do you think? What is your biggest practice expense? If you are employed, does is this expense a limiting belief holding you back from private practice? Could Link Medical Spaces help? Let me know in the comments below!